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## Karnataka 1st PUC Economics Model Question Paper 6 with Answers

Time: 3.15 Hours
Max Marks: 100

Instructions:

1. Write the question numbers legibly in the margin.
2. Answer for a question should be continuous.

Section – A

I. Choose the correct answer: ( 1 × 5 = 5 )

Question 1.
Frequency polygon is used in the presentation of
(a) Ungrouped data
(b) Both types of data
(c) Grouped data
(d) None of these
(c) Grouped data

Question 2.
Bibliography indicates
(a) Primary sources
(b) Oral resources
(c) Secondary sources
(d) T.V.News
(c) Secondary sources

Question 3.
In India, census is carried out once in
(a) 5 years
(b) 10 years
(c) 2 years
(d) 20 years
(b) 10 years

Question 4.
It is an agricultural allied activity
(a) Poultry
(b) Cottage industry
(c) Tourism
(d) Small industry
(a) Poultry

Question 5.
GNP stands for
(a) Gross national price
(b) Good network product
(c) Gross national product
(d) None of these.
(c) Gross national product

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
Resources are limited but wants are _____________
unlimited

Question 7.
Arithmetic line graph is also called as___________
Time series graph

Question 8.
_______ transport is considered as the most important contribution of British rule
Railways

Question 9.
Economic reforms were introduced in India in the year____________
1991

Question 10.
________ state has achieved excellence in information technology
Karnataka

III. Match the following: ( 1 × 5 = 5 )

Question 11.

 A B 1. Pilot survey (a) Fruit production 2. Consumer price index (b) Institutional finance 3. Golden revolution (C) Petroleum 4. NABARD (d) Cost of living index 5. Nonrenewable resource (e)Pretesting questionnaire.

1-c
2-d.
3-a.
4-b.
5-c.

IV. Answer the following questions in a word sentence: ( 1 × 5 = 5 )

Question 12.
What is economics according to Alfred Marshall?
According to Alfred Marshall. ”Economics is the study of mankind in the ordinary business of life. It examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being”

Question 13.
Why did the colonial government ban canal transport?
The colonial government banned canal transport as the measures taken for development of inland trade and sea lanes were far from satisfactory. The inland w aterw ays proved uneconomical and failed to compete with railways.

Question 14.
Expand IBRD.
International Bank for Reconstruction and Development.

Question 15.
What is infrastructure?
Infrastructure is a network of physical facilities and public services which act as important base for economic and social development of the country.

Question 16.
Expand NCERT.
National Council of Educational Research and Training.

Section – B

V. Answer any four of the following questions in four sentence each. ( 2 × 4 = 8 )

Question 17.
Give the meaning of pilot survey.
Once a questionnaire is ready, it is advisable to conduct a try out with a small group which is known as pilot survey or pretesting of the questionnaire. It gives a preliminary idea about the survey. It helps in pretesting of the questionnaire, so as to know1 the shortcomings and drawbacks of the questions.

Question 18.
Give the formula to find out mid point.
The formula to find out midpoint is as follows:
Mid point = $$\frac{\text { Upper class limit + Lower class limit }}{2}$$

Question 19.
Write the meaning of temporal classification with an example.
Temporal classification is one in which the classification of data is done on the basis of time. Example hours, days, weeks, months, years, decades, etc.

Question 20.
Calculate the value of the mean from the following figures
X: 50, 70, 90, 120, 110, 80, 70, 150, 250.
X̄ = $$\frac{\Sigma X}{N}=\frac{990}{9}$$ = 110

Question 21.
Which quartiles are used to calculate the interquartile range? Give the formula of it.
The upper and lower quartiles are used to calculate the interquartile range.
It is calculated by using the formula Interquartile range = Q3 – Q1

Question 22.
Write any four features of index numbers.
The four features of index numbers are as follows:

• Index numbers are specialized averages
• Index numbers are expressed in percentages
• Index numbers measure the effect of changes in relation to time or place.
• Index numbers measure the changes that are not capable of direct measurement.

VI. Answer any five of the following questions in four sentence each. ( 2 × 5 = 10 )

Question 23.
Name the modern industries which were in operation in our country at the time of Independence.
The modem industries which were in operation in our country at the time of independence were Tata Iron and Steel Company, cotton textile industry, jute industry, sugar industry, cement industry, paper industry, etc.

Question 24.
What do you mean by the green revolution? How was it possible?
Green revolution refers to the large increase in the production of food grains resulting from the use of high yielding variety seeds, particularly for wheat and rice.

We could achieve green revolution with high yielding variety of seeds, irrigation facilities and financial resources to purchase fertilizer and pesticides. So the benefits of the green revolution were restricted to only a few states like Punjab, Andhra Pradesh and Tamil Nadu.

Question 25.
What are the various forms of health expenditure?
The various forms of health expenditures are as follows:

• Preventive medicine (vaccination)
• Curative medicine (medical intervention during illness)
• Social medicine (spread of health awareness)
• Provision of clean drinking water and good sanitation.

Question 26.
What is the role of self help groups in providing rural credit?
The major role of self-help groups is to encourage small savings from each member and the pooled money is given as loans and advances to the needed member at a very low rate of interest and also at easy repayment installments.

Question 27.
Who are all included in labor force?
All those who are engaged in economic activities, in whatever capacity high or low are called workers. Even if some of them temporarily abstain from work due to illness, injury or othei physical disability, bad weather, festivals, social or religious functions are also workers. Apart from these, the labour force also consists of those who help the main workers and self-employed workers.

Question 28.
Write the meaning of global burden of diseases.
The global burden of diseases is an indicator used by experts to guage the number people dying prematurely because of a particular disease and the number of years spent by the people in a state of disability owing to that disease, during a given period of time.

In India, more than half of global burden of disease is accounted for by communicable diseases like diarrhea, malaria and tuberculosis. Even year around five lakh children die of waterborne diseases.

Question 29.
Write any two threats to the environment in our country.
The major threats of the environment in India are as follows:

• Threat of poverty induced environmental degradation
• The threat of pollution from rapidly growing industrial sector, air pollution, water contamination, soil erosion, deforestation, and wildlife extinction.

Section – C

VII. Answer any three of the following questions in twelve sentence each. ( 3 × 4 = 12 )

Question 30.
How will you choose the wants to be satisfied?
It is a well-known fact that human wants are unlimited and resources to satisfy them are limited. Though human wants are unlimited these wants vary in intensity and urgency. Some wants are more intense and urgent than other wants. We give top priority to more intense and urgent wants.

For instance, a family may want to go on a tour to America and also want to have a flat, We expect that the family opts for buying the flat first and choose to go to America later.

Hence, a consumer always selects that combination of products that give him maximum satisfaction. Similarly, a producer may take the best combination of two inputs so that it requires less cost of production and get maximum profit.

So. we have to choose thoše wants to be satisfied first which requires immediate attention. This is what we learn from the study of economics.

Question 31.
Does the lottery method always give you a random sample? Explain.
It ¡s a well-settled fact that the lofler method always gives us a random sample. Random sampling is the one where the individual units from the population (samples) are selected at random.

For instance, the government wants to determine the impact of the price rise in LPG on the household budget of a particular locality. For this. a representative sample of 20 households has to be taken and studied. The names of the 200 households of that area are written on pieces of paper and mixed eI1. then 20 names to be interviewed arc selected one bone.

In random sampling, ever an individual has an equal chance of being selected and the individuals who are selected are just like the ones who are not selected. In the above example. all the 200 sampling units of the population got an equal chance of being included in the sample of 30 units and hence the sample, sO drawn, is a random sample. So. the lottery method always gives us random samples.

However, the lottery method will not give a random sample in the following cases:

• If the slips are not made of identical size and it is possible to identify the names or numbers on the slips.
• If same name or number is written on more than one slip or if some name or number is missed out.

Question 32.
Calculate the correlation coefficient between X and Y and comment on their relationship.

Comment: There is no linear relation between X and Y.

Question 33.
Write a note on SENSEX.
Sensex is the short form for the of Bombay Stock Exchange Sensitive Index with 1978-79 as base. The value of the Sensex is with reference to this period. It is the benchmark index for the Indian stock market, It consists of3O stocks which represent 13 sectors of the economy and the companies listed arc leaders in their respective industries. 1f the Sensex rises, it indicates that the market is doing cll and investors expect better earnings from companies. It also indicates growing confidence of investors in the basic health of the economy.

Further, the sensitive index is a market capitalization of weighted index of sample of large. well established and financially sound companies. It is the oldest index in India and has acquired a unique place in the collective consciousness of investors. This index is idely used to measure the performance of the Indian stock market. It is the pulse of the Indian capital market.

Question 34.
The yield of wheat per acre for ten districts of a state is as under

Calculate mean deviation from mean
Calculation of mean deviation mean:

VIII. Answer any four of the following questions in twelve sentence each: ( 4 × 4 = 16 )

Question 35.
What do you understand by the ‘drain of Indian wealth’ during the colonial period?
The most important feature of indias foreign trade during British rule was the generation of a large export surplus. That means Indias exports exceeded its imports. it resulted in a disadvantage to the country is economy.

The essential commodities were not made available to Indians as they were exported to Britain in large quantities ignoring domestic needs.

The export surplus (value of exports being greater than the value of imports) was used to make payments for the expenses incurred by an office set up by the colonial government in Britain. expenses on war, again fought by the British Government and the import of invisible items. This is known as Drain of Indian eaith.

Question 36.
Write a note on WTO.
The World Trade Organisation was founded in 1995 as the successor organization to the General
Agreement on Trade and Tariff which was established in 1948

The main objectives of WTO are as follows:

• To establish a rule-based trading system in which nations cannot place arbitrary restrictions
• To enlarge production and trade of services
• To ensure optimum utilization of world resources
• To protect the environment.

The various WTO agreements cover trade in goods and services to facilitate international trade i.e. both bilateral and multilateral, through the removal of tariff and non-tariff barriers and providing greater market access to all the member countries.

India. being a founder member, ha been in the mainframe in framing fair global rules, regulations, and safeguards and advocating the interests of the developing world. India has kept its commitments towards liberalization of trade, made in the VTO, by removing quantitative restrictions on imports and reducing tariff rates.

But, some economists argue that the usefulness of WTO to India is not much when compared to developed countries. The major portions of benefits are enjoyed by the rich countries. They also say that while developed countries file complaints about agricultural subsidies given in their countries, developing countries feel cheated as they are forced to open up their markets for developed countries but are not allowed to access the markets of developed countries, which is totally unfair to Indian producers.

Question 37.
What do you mean by a growth-oriented approach to poverty reduction? Why it is not successful in India?
The growth-oriented approach is based on the expectation that the effects of economic growth i.e. the rapid increase in gross domestic product and per Capita Income, would spread to all sections of the society and vi1l trickle down to the poor sections also.

The growth-oriented approach to reduce poverty was not successful in India because of the following reasons:
(a) It was felt that the rapid industrialization and green revolution would benefit the underdeveloped regions and the more backward sections of the community. But, the overall growth and growth of agriculture and industry have not been impressive.
(b) Population growth has resulted in a very low growth in per capita incomes.
(c) The gap between poor and rich has actually widened.
(d) The green revolution increased the disparities regionally and that between large and small farmers.
(e) There was unwillingness and inability to redistribute land.
(f) Economists say that the benefits of economic growth have not trickled down to the poor.

Question 38.
Write a short note on alternative markets.
The examples for emerging alternate marketing channels are as follows:

• Farmers directly sell their agricultural produce to consumers. Example: Apni Mandi in Punjab, Haryana. and Rajasthan, Rvthu Bazars (vegetables and fruits markets) in Andhra Pradesh. Uzhavar Sandhai – (a farmers market) in TamilNadu.
• Agricultural contracts several domestic and multinational companies entering agreements with Indian farmers in which farmers are encouraged to grow farm products (vegetables and fruits) of desired quality by providing them with not only seeds and other inputs but also assured procurement of the produce at predecided prices.

The main benefits of alternative agricultural marketing channels arc:

• The fanners get seeds and other agricultural inputs
• Farmers are assured of procurement of agricultural products at predecided prices
• Help in reducing price risk of farmers
• Expansion of markets for farm products in India and abroad.

Question 39.
Discuss the two types of rural unemployment.
The following are the two types of rural employment.
(a) Disguised unemployment: It is that type of unemployment where we can come across excess number of workers engaged in some work, but actually less number of workers are required. For instance, suppose a farmer has four acres of land and he actually needs only two workers and half to carry out various operations on his farm in a year. but if he employs five workers and his family members such as his wife and children, this situation is called disguised unemployment.

(b) Seasonal unemployment: ¡t is that unemployment where the rural people get employment only during a particular season. We havè noticed that many people migrate to urban areas, pick up a job and stay there for some time, but come back to their home villages as soon as the rainy season begins. This is because work in agriculture is seasonal; there are no many employment opportunities in the village for all the months in a year. When there ¡s no work to do on farms, people go to urban areas and look for temporary jobs. This is one of the instances of seasonal unemployment.

Question 40.
Write a short note on power in India.
Energy is one of the basic infrastructures which is very essential for the economic development of a country. It is indispensable for industries, used on a large scale in agriculture and related areas like production and transportation of fertilizers, pesticides, and farm equipment. It is required in houses for cooking, household lighting, and heating. The sources of energy can be classified as follows.

(a) Commercial sources of energy and Non-commercial sources of energy:
The commercial sources of energy arc the energy sources which arc bought and sold. Examples, coal, petroleum and electricity.

Non-commercial sources of energy are the sources that arc freely available in nature or forest. Example. firewood. agricultural waste and dried dung.

(b) Conventional and non-conventional energy sources:
The conventional sources of energy are the traditional sources of energy used for a long period of time. They consist of coal, petroleum. electricity. firewood. agricultural waste, etc.

The non-conventional sources of energy are modern sources of energy which include solar energy, wind energy and tidal power. Being a tropical country. India has almost unlimited potential for producing these types of energy. if suitable cost-effective techniques are adopted.

Section – D

IX. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 41.
Draw a table and mark its parts.

Question 42.
Calculate Q1, Q2, and Q3 from the following data.
22, 26, 14, 30, 18, 11, 35, 41, 12, 32.

Calculation of Q1:
Q1 = Size of $$\left(\frac{\mathrm{N}+1}{2}\right)^{th}$$ item
Q1 = Size of $$\left(\frac{10+1}{4}\right)^{th}$$ item
Q1 = Size of $$\left(\frac{11}{4}\right)^{\mathrm{th}}$$ item
Q1 = Size of 2.75th item
= 2nd item + 0.75 (3rd item – 2nd item)
= 12 + 0.75 (14 – 12)
= 12 + 0.75 (2)
= 12 + 1.5
Q1 = 13.5

Calculation of Q3:
Q3 = Size of $$\frac{3(\mathrm{~N}+1)}{4}$$ item
Q3 = Size of $$\frac{3(10+1)}{4}$$ item
Q3 = Size of $$\left(\frac{3(11)}{4}\right)^{\mathbb{th}}$$ item
Q3 = Size of $$\left(\frac{33}{4}\right)^{th}$$ item
Q3 = Size of 825th item
Q3 = 8th item + 0.25 (9th item – 8th item)
Q3 = 32 + 0.25 (35 – 32)
= 32 + 0.25 (3) = 32 + 0.75
Q3 = 32.751

Question 43.
The yield of Rice per acre for ten districts of a state are as under

Calculate standard deviation and coefficient of variation.

CV = $$\frac{\sigma}{\bar{X}}$$ × 100 = $$\frac{7.16}{19.5}$$ × 100 = 36.717

X. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 44.
Explain the status of India’s agriculture during British rule.
Indian Economy under British rule remained agrarian. About 85% of the countrys population lived mostly in villages and derived their livelihood directly or indirectly from agriculture. But, the agricultural sector continued to experience stagnation.

The agricultural productivity was very low though the area of cultivation expanded. The main reason was the land settlement system introduced by the colonial government. Under the zamindari system which was implemented in the then Bengal presidency comprising parts of India’s present-day eastern states. the profit accruing out of the agriculture sector went to the zamindars instead of the cultivators. A considerable number of zamindars and colonial governments did not improve the condition of agriculture. The main interest of the zamindars was only to collect rent regardless of the economic condition of the cultivators.

The terms of revenue settlement with zamindars made the zamindars to be strict in collecting land revenue from the actual cultivators even at the time of drought. This as mainly because. the zamindars were given dates for depositing specified sums of revenue, failing which the zamindars were to lose their rights.

Apart from these. low levels of technology. The lack of irrigation facilities and negligible use of fertilizers were also equally responsible for bad status of agriculture during British rule.

Question 45.
Briefly explain the important areas of Liberalisation.
Liberalization was one of the reforms of New Economic Policy of 1991, It was introduced to put an end to the restrictions and open up various sectors of the economy. The following are the important areas of liberalization:

(a) Deregulation of industrial sector: The liberalization policy removed man restrictions enforced on industnal sector. Industrial’Iicensing was abolished for almost all but product categories like alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace and drugs and pharmaceuticals. The only industries which are not reserved for the public sector are defence equipment, atomic energy generation and railway transport. Many goods produced by the small scale industries have now been deserved,

(b) Financial sector reforms: The financial sector consists of financial institutions like commercial banks, investment banks, stock exchange operations and foreign exchange market.

The financial sector in India is regulated by the Reserve Bank of India. The RBI decides the amount of money that the banks can keep with themselves, fixes interest rates. nature of lending to various sectors, etc.

The major objective of financial sector reforms is to reduce the role of RBI from regulator to facilitator of financial sector. That means, the financial sector may be allowed to take decisions on man matters independent of RBI.

The financial sector reform policies led to the establishment of private sector banks both Indian and foreign. The foreign investment limit in banks was raised to around 50%. The banks which fulfil certain conditions have been given the freedom to set up new branches without the approval of the RBI. Foreign institutional investors (FII) like merchant bankers, mutual funds and pension funds arc now allowed to invest in Indian financial markets.

(c) Tax reforms: These are the reforms that are concerned with the government’s taxation and public expenditure policies which are collectively known as its fiscal policy. There are two types of taxes, direct and indirect.

Since 1991, there has been a continuous reduction in the taxes on individual incomes as it was felt that high rates of income tax were an important reason for tax evasion. It is now widely accepted that moderate rates of income tax encourage savings and voluntary disclosure of income.

Question 46.
Explain the causes of poverty.
The major causes for poverty in India are as follows:
(a) Unemployment: Poverty is closely related to the nature of employment, unemployment, and underemployment. A large section of urban and rural poor are unable to get proper income generating employment opportunities The industrialization has failed to absorb the unemployed youths in India. Casual laborers are most vulnerable as the’ do not have job security, no assets and have limited skills.

(b) Inflation: A continuous rise in the price of food grains and other essential commodities has intensified the poverty of the poor. The purchasing power of poor people is deteriorating due to inflationary situations in the country.

(c) Unequal distribution of income and wealth: The unequal distribution of income and assets has also led to the persistence of poverty in India. There is ide gap between the rich and the poor. where the poor are unable to get opportunities to come Out of poverty line.

(d) Negative impact of British rule Indian economy: During the British Nile there was deindustrialization. The import of cotton textiles displaced many Lndian producers. More than 70% of Indians were engaged in agriculture throughout British period. As the British made India a market for their finished products. Indian merchants incurred huge losses due to their inability to compete with the low priced products of Britain imported to India. Our natural resources were overexploited by the British and foodgrains were exported. Many Indians died due to famine and hunger. So, this had continued even after independence.

(e) Unequal distribution of income and wealth: There is a large scale unequal distribution of income and wealth in India. The wealth is concentrated in the hands of a few individuals. Though the Government had tried to redistribute land among the landless agricultural labourers to reduce the magnitude of poverty, it was successful only to a limited extent as large sections of agricultural workers were not able to cultivate small land holds duc to shortage of money or lack of skills to make the Land productive and the land holdings were too small.

(f) Lack of skills and knowledge: Most of the people who belong to backward communities are not able to participate in the emerging employment opportunities in different sectors of urban and rural economy due to their ignorance and illiteracy. Many of the schedule caste and schedule tribe people do not have necessary knowledge and skills in this regard.

(g) Excess population: The access population in India is also one of the causes for poverty. The supply of labourers is more than demand for labour. The employment generation is than the growth rate of population in India. The government is struggling hard to provide basic amenities due to rapid growth of population in India.

(h) Other causes for poverty are:

• Social and political inequality
• Social exclusion
• Indebtedness (excessive borrowings of loans)
• Low capital formation
• Lack of infrastructure
• Lack of effective demand

XI. Answer any two of the following project oriented questions. ( 2 × 5 = 10 )

Question 47.
Suppose you are a research student and you are asked to conduct a sample survey about the mid-day meals program in schools. Prepare a good questionnaire to support your survey.

 Questions Responses (Tick the appropriate one) 1. Your name 2. Your age 3. Gender Male/Female 4. School: 5. How many members in your family are working? 6. Monthly family income 7. Resident of Urban/Rural 8. Where do you eat lunch every day? a) House b) Hotel c) School d) Other 9. Do you like eating at schools? Yes /No 10. How often, like the food served at ‘ your school: (a) every day (b) Once in 4 days (c) Once in 2 days (d) None 11. Do you get tasty food? Yes/No 12. What made s ou to choose school food? (a) Tasty (b) Free of cost (c) Good quality (d) None 13. Are you satisfied with the taste? Yes/No 14. Is the supply of food helpful? Yes /No 15. Do you examine quality of food? Yes/No 16. Quality of rice used (a) Good (b) Excellent (c) Better (d) Loss-quality 17. Are vegetables used in every days food? Yes /No 18. Do you expect more food? Yes /No 19. The quality of vegetables, pulses used are (a) Good (b) Excellent (c) Very good (d) None 20. Are you coming to have lunch in school? Yes/No 21. Do you think there should be an improvement in mid-day meals program Yes/No

Question 48.
Suppose you are a resident of a village, suggest a few measures it tackle the problem of poverty.
If support in implementing the fo11oving programs successfully. we can easily eradicate poverty:

• Swarnajayanti Gram Swarozgar Yojana (SGSY)
• Swarnajayanthi Shahari Rozgar Yojana (SJSRY)
• National Food for Work Programme (NFWP)
• Sampooma Gramecn Rozgar Yoj ana ( SGRY)
• Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGP)
• Public Distribution System (PDS)
• Integrated Child Development Scheme (ICDS)
• Mid-day Meals Scheme
• Indira Awas Yolana
• Vaimiki Ambedkar Awas Yoj ana.

Question 49.
Name any ten power generating units in India.